On behalf of the Association nationale des éditeurs de livres, I want to thank you for having me here in connection with this study on the first legislative initiative to specifically regulate artificial intelligence systems in Canada.
My name is Stéphanie Hénault, and I am the director of legal affairs at the association, which represents francophone book publishing companies across the country. Together with the Union des écrivaines et des écrivains québécois, the association that represents authors in Quebec, we have established Copibec–Gestion collective des droits de reproduction, which offers copyright and royalty management solutions for users and rights holders. Associated with the International Publishers Association, the largest publishing federation in the world, we promote publishing as an economic, cultural and social development driver and are leaders in its evolution. By collectively participating in major international fairs and salons, hosting foreign publishers, booksellers and journalists here in Canada and taking part in numerous foundational projects, we are involved in numerous efforts to promote the exposure of French Canadian books.
For example, we established the Entrepôt ANEL-De Marque, which has fostered the successful development of a business model that complements that of the print industry, and we support our members in implementing digital strategies that promote their development. More specifically, we promote books in all formats in francophone countries and the translation of those books in countries such as Germany, Argentina, China, Egypt, Spain, the United States, Mexico, Iceland, Sweden, Serbia and Turkey, to name only a few.
The more Canadian literature is read internationally, the more popular it becomes among readers. The more often it's noticed by juries, the more awards it wins and the more it sells on all continents, including in our own country. The following numbers show how successful French Canadian books have become. In Quebec alone, sales of new books represent a market valued at approximately $680 million a year. Also in Quebec, the market share of francophone publishing companies represents 50% of sales, even though 900 foreign publishers distribute their books here.
In the artificial intelligence era, the entire Canadian book publishing industry needs our support, now more than ever, in establishing updated policies and programs by encouraging the lawful supply of content in this field.
This is why we took an active part in the recent consultation on generative AI and copyright by supporting the responsible development of artificial intelligence. We did it with Access Copyright, the Association of Canadian Publishers, the Association des éditeurs de langue anglaise du Québec, the Canadian Authors Association, the Canadian Publishers' Council, Copibec, the Literary Press Group of Canada, the Regroupement des éditeurs franco-canadiens, the Writers' Union of Canada, the Union des écrivaines et des écrivains québécois, as well as with our partners in the Coalition for the Diversity of Cultural Expressions.
The global publishing industry relies on copyright, particularly the exclusive right to authorize or prohibit the use of works and to engage in fee-based licensing. These rights are engaged when works are integrated in AI systems and when those systems are used if works are reproduced within them. For rights holders, the ability to grant or withhold permission to use works in these ways is as important as the compensation that may follow therefrom, particularly when a production of an artificial intelligence system competes with the work, substitutes it or undermines the author's moral right, to name only those forms of harm.
In the British, European and North American markets, we are seeing increasing numbers of copyright violation actions against AI models and trade agreements that are being reached to allow content to be licensed for text and data search purposes.
In Canada, licensing for text and data search is a growing market. We implore the government, on behalf of the book publishing industry, to encourage that industry by amending part 3 of Bill C-27 such that it clearly establishes that artificial intelligence must be developed and deployed responsibly, in the following manner: first, by implementing procedures that guarantee compliance with copyright legislation when its models are trained; second, by establishing obligations of transparency in the publication and availability of information on content integrated in its systems; and, lastly, by clearly and expressly stating in its own conditions of licensing with its users that the latter are required to comply with copyright.
The Copyright Act affords copyright holders remedies for addressing counterfeit cases involving AI developers, suppliers and users. First, however, AI framework legislation must at least provide that the intellectual property of Canadians be respected. Otherwise, the Canadian royalties market could well be hit even harder as systems will be developed and deployed secretly, unfairly and unlawfully.
Let me be very clear: we are not opposed to artificial intelligence, but we do contend that all Canadian market actors must support the legitimate interests of authors and publishers, as well as their essential contribution to innovation, knowledge, culture, diversity, cultural outreach, the economy and wealth of the country. We therefore emphasize that you must ensure our country at least complies with international practices respectful of authors and publishers, as Europe is doing with its new AI legislation, to prevent Canada from looking like a banana republic of international technology companies.
In conclusion, I want to emphasize that authors and publishers are also counting on you to improve the Copyright Act, failing which they will be unable to receive the legitimate royalties that their international counterparts receive when their works are reproduced at certain educational institutions. I would also remind you that this priority was supported by the Standing Committee on Science and Research in its November 2023 report entitled Support for the Commercialization of Intellectual Property.
On behalf of the Association nationale des éditeurs de livres, thank you very much for listening. I will be pleased to answer your questions.